
Figure 7.9 Long-Run and Short-Run Marginal Costs
MCSR,10,
MCSR,20, and
MCSR,30 are derived from
ATCSR,10,
ATCSR,20, and
ATCSR,30, respectively. The lon
g-run marginal cost curve must intersect MCSR,10, MCSR,20, and MCSR,30 at A, Y, and B, the points at which labor is cost-minimizing for Q = 10, Q = 20, and Q = 30 given
,
, and
. Therefore, A, Y, and B are the long-run marginal costs for Q = 10, Q = 20, and Q = 30, respectively, and the long-run marginal cost curve MCLR connects A, Y, and B.